Use a 0% balance transfer without getting burned

How a balance transfer works

You open a new card with a promotional rate, often 0%, and move existing card debt onto it. You usually pay a one-time transfer fee, then every payment during the promo period goes to principal. Our step-by-step guide on how to do a balance transfer covers the exact order of operations.

Do the math first

Take the transfer fee, add it to the balance, and divide by the number of promo months. If you can pay that amount every month, the transfer almost always saves money. If you cannot, plan what happens when the 0% APR ends. Our guide to balance transfer fees shows the break-even math, and the balance transfer calculator runs it for you.

Traps to avoid

• Missing a payment can end the promo rate early.
• New purchases on the card may not get the 0% rate.
• Store cards often use deferred interest, which is not the same as 0%.
• Closing the old card right away can raise your utilization.

We collected the big ones in 7 balance transfer mistakes that wipe out your savings.

Approval, limits and credit

Worried about your score? Read does a balance transfer hurt your credit. If your approved limit is smaller than your debt, see what to do when the limit is too low. Fair credit? Here are realistic options with fair or bad credit. Quick answers: same-bank transfers, how many transfers you can do, and using a transfer for a car loan.

Pair it with a payoff method

A 0% window is fuel, not a plan. Combine it with the snowball or avalanche in balance transfer plus snowball, and check your debt-free date in the Burn-Down Calculator.